Oman and the private sector

Oman is trying to diversify its economy and create a new role for a burgeoning public sector.

When Oman unveiled a plan this year to build a large petrochemical complex alongside a $6 billion refinery in the southern coastal town of Duqm, officials hailed the project as a step towards diversifying income and creating jobs.

The government of Sultan Qaboos bin Said, Oman’s ruler for 42 years, earmarked Duqm as the next industrial growth city with investments of up to $15 billion planned in new petrochemical and infrastructure projects at the port over the next 10 years.

Among other projects, Oman hopes to boost growth and employment with a 1,000 km, $13 billion railway. It is also investing heavily in airport and port operations in the southern city of Salalah near the border with Yemen. It is all part of a plan to give the private sector a bigger role in the economy as oil production, which accounts for 77 per cent of government revenues and half of economic output in non-Opec Oman, looks to be nearing a peak.